VC Buzz – $275.4+ Million in Today’s Deals


New in the News



AllBusiness.com, Allegis, Allegrix, BroadLogic, B2BWorks, ChemIndustry.com, DataCHEST.com, DeepCanyon, divine interVentures, Draper Fisher Jurvetson Gotham, eBondTrade.com, e-tel, eUniverse, FastParts.com, fourthchannel, Hard Dollar, InterXion, KnowledgeNet, LinuxNewbie.org, LizardTech, MyPrimeTime, Not a Number, One Stop.Com, PictureIQ, PrimeOne Solutions, ServiceWare, Sevin Rosen Funds, ShopTok, SiteSmith, StarMedia Network, Ventana Global, Venture Catalyst, Worldweb.net, Zhone Technologies







Deal News



InterXion Secures 100 Million Euro Financing



AMSTERDAM, Netherlands — InterXion (pronounced Inter-Action), a pan-European provider of managed neutra

l Internet Exchange Centers, attracted more than 100 million Euro ($97 million) of financing to expand in 11 of the key markets across Europe by the second quarter of this year. The capital is provided by Baker Communications Fund, Bear Stearns Merchant Banking, Fleet Equity Partners, Morgan Stanley Dean Witter, Residentie Investments and Paribas Deelnemingen N.V.


http://www.interxion.com






Allegis Secures $29M in Late-Stage Funding Round



SAN FRANCISCO — Allegis Corp., a partner relationship management firm that enables companies to drive eBusiness revenue through indirect sales and distribution channels, closed a $29 million round of late-stage funding. Led by Pivotal Asset Management, all prior investors participated in this round, which include Benchmark Capital, Integral Capital and Brinson Partners. Other new investors include Charter Growth Capital, Credit Suisse First Boston, Deutsche Banc Alex Brown, Chase Hambrecht & Quist, the Intel 64 Fund, MSD Capital, Palantir Capital and Staenberg Ventures.


http://www.allegis.com


http://www.benchmark.com


http://www.integralcapital.com


http://www.brinsonpartners.com






MyPrimeTime Secures $25 Million Second-Round Equity Financing



SAN FRANCISCO — MyPrimeTime, an interactive media company targeting adults aged 35 to 54, completed a $25 million round of venture-capital funding, led by Sequoia Partners. Other investors include Hummer Winblad Venture Partners, Blue Chip Capital, Presidio Ventures Partners, Odyssey Research and W.R. Hambrecht. Hummer Winblad led the company’s first round financing last June. The total equity capital investment in the company now stands at more than $30 million. MyPrimeTime will produce and distribute original television and radio programming that, like the content currently being developed for the myprimetime.com Web site, is geared toward the needs and interests of millions of people in their 30s, 40s and 50s.


http://www.myprimetime.com


http://www.humwin.com


http://www.bcvc.com






BroadLogic Secures $20 Million in Second-Round Financing



MILPITAS, Calif. — BroadLogic, a provider of broadband networking equipment, raised $20 million in a second round of financing. New investors include GE Capital Merchant Banking Group, a wholly-owned subsidiary of General Electric Co., and Levensohn Capital Management. Other investors in this round included Adaptec, August Capital, Intel Capital, and Walden International Investment Group, all participants in BroadLogic’s first round of financing.


http://www.broadlogic.com






SiteSmith Raises $20 Million in Second Round Financing



SANTA CLARA, Calif.– SiteSmith, an Internet site operations company, raised $20 million in financing. New investor Weiss, Peck & Greer Venture Partners led the round and existing investors ComVentures and Bedrock Capital also participated. SiteSmith plans to use the funding for business activities including European expansion efforts, acquisitions and marketing programs.


http://www.sitesmith.com


http://www.wpgvp.com


http://www.comven.com


http://www.bedrockcapital.com






PictureIQ Raises $16 Million in Second Round of Funding



SEATTLE, — PictureIQ Corp., formerly Digital Intelligence, a developer of embedded digital imaging software for the Internet and consumer electronics devices, closed a second round of funding totaling more than $16 million. New investors include Digital Partners, Hikari Tsushin, InfoSpace.com, Intel Capital and Naveen Jain. Existing investors Adobe Ventures and H&Q Venture Associates also participated in this round. The company develops and markets PictureIQ technology, providing its partners with digital photography capabilities such as photo enhancement, creative special effects, and the creation of photo greeting cards and calendars.


http://www.pictureiq.com






Oak Investment Partners Leads $15 Million Investment in LizardTech



SEATTLE– LizardTech Inc, a developer of imaging technology, completed a third round of private equity financing led by Oak Investment Partners, totaling $15 million. SeaPoint Ventures and Encompass Ventures also participated in the round of financing. Tom Huseby, SeaPoint Ventures managing partner, will join the LizardTech board of directors. Encompass Ventures, along with Kirlan Ventures, Summit Ventures and Staenberg Private Capital, led earlier private investments in LizardTech. LizardTech has raised approximately $20 million total in private equity investments. The round of financing will enable LizardTech to develop its wavelet-based imaging language, called MrSID(TM) (Multiresolution Seamless Image Database) for new platforms and applications.


http://www.lizardtech.com


http://www.seapointventures.com


http://www.encompassventures.com






KnowledgeNet Secures $15 Million in Third Round of Financing



SCOTTSDALE, Ariz. — KnowledgeNet, a provider of next generation e-learning solutions, received $15 million in financing, bringing the to

tal amount invested in the company to $33.9 million. The company’s third round of financing was led by new investor Berkeley International Capital Corp., and includes previous investors Morgenthaler Partners, Sierra Ventures and Trinity Ventures. KnowledgeNet’s live and self-paced e-learning offerings generate “knowledge on demand” anywhere, anytime. The company closed its second round in October 1999.


http://www.knowledgenet.com


http://www.berkeleyvc.com


http://www.morgenthaler.com


http://www.sierraventures.com


http://www.trinityventures.com






Grantlun Gets $11 Million to Launch



TEMPE, Ariz. — Grantlun Corp., a provider of estimating and project management software for the infrastructure construction industry, closed an $11 million round in new venture capital funding from the J.H. Whitney investment firm. To leverage the reputation and visibility of its Hard Dollar brand, the company is changing its name to Hard Dollar Corp.


http://www.grantlun.com


http://www.jhwhitney.com






ShopTok Secures $6 Million in First Round of Funding



SAN FRANCISCO– ShopTok, a leader in hosted selling and customer support solutions for e-merchants, closed a $6 million first round of venture funding from three top information technology venture capital firms. The co-investors for this round are DynaFund Ventures, Vanguard Venture Partners and Forrest Binkley & Brown. By linking a diverse group of communications interfaces to a powerful data-mining engine, ShopTok allows emerchants to tap into current session data and provide a more personalized sales experience.


http://www.shoptok.com


http://www.dynafundventures.com


http://www.vanguardventures.com






PrimeOne Solutions Secures $5.7 Million in First Round of Venture Funding



AUSTIN, Texas– PrimeOne Solutions, an Austin-based software company developing innovative solutions designed to generate greater value from and for video, data, voice, utility and other subscriber-based industry customers, closed $5.7 million in its first round of venture capital funding, bringing the total to $6.2 million invested in the company since August 1999. The funding was led by Austin Ventures. Prime New V

entures, Coditel S.A., Brobeck, Phleger & Harrison and others also participated in the round.


http://www.austinventures.com






Allegrix Raises $5.6 Million in First Round of Financing



SANTA CLARA, Calif.– Allegrix, a company providing ASP-enabling services to ISVs and VARs, raised $5.6 million in the company’s first round of financing. The round was led by Signia Ventures , a new venture fund formed by Rick Thompson and Larry Braitman. Additional investors include Western Investments Capital, and Peter Olson. Also participating is Santa Cruz Operation (Nasdaq:SCOC) whose investment includes a strategic operating agreement.


http://www.allegrix.com


http://www.signiaventures.com


http://www.wicllc.com






Not a Number Secures Growth Financing



AMSTERDAM, The Netherlands– Not a Number BV, developers of multi-platform 3D design and animation software, completed growth financing valued at $4.5 million, ensuring the future growth and development of NaN’s creativity product — Blender (http://www.blender.nl). NPM Capital (AEX:NPM) is the lead investor in this financing round. NPM Capital is the largest independent supplier of venture capital in the Netherlands and operates throughout the European Union, having participated in funding approximately 175 companies in cooperation with venture capital companies in the United Kingdom, Germany, Belgium and Ireland. The company’s market capitalization totals in excess of EUR 1.1 billion.





e-tel Receives $2.5 Million in First-Round Financing



WEST WARWICK, R.I.– e-tel Corp., a developer of the industry’s first, standards-compliant line of IP telephones, secured $2.5 million in early-round financing. The funding will enable e-tel to market its FreeRide family of voice-over-IP phones, IP appliance phones, and low density residential VoIP gateways. No further details were disclosed.





Martlet Venture Management Invests in DataCHEST.com



MONTREAL– Martlet Venture Management (CDNX:MVM.), Process Technology Group and Investissement Desjardins made a total investment of CDN $3,065,000 (about US $2.1 million) in DataCHEST.com. The company is a business portal that provides centralized access to chemical and EHS&T regulatory databases over the Internet, Intranet or corporate extranet on a pay-per-usage or corporate subscription basis. DataCHEST.com acts as data warehouse for international electronic information such as product data, regulation, formulation, hazardous materials and controlled substances management.


http://www.datachest.com






ChemI

ndustry.com Secures Seed Financing of up to $1 Million



PASADENA — ChemIndustry.com, a provider of Web-based specialized search services for the $1.6 trillion chemical and allied industries, secured up to $1 million in seed financing from Net Effect Technologies, a Pasadena, CA-based Internet incubator. ChemIndustry.com currently has more than 15,000 separate entries representing over 6,000 distinct Web sites in its database.


http://www.chemindustry.com


http://www.neteffecttech.com






eBondTrade.com Secures Second Round Funding



SAN FRANCISCO– eBondTrade.com completed a second round of funding, bringing total capital to approximately $31.5 million dollars for its online municipal bond trading site. Investors include Chase Capital Partners, Access Technology Partners, along with The Anschutz Group. The company offers immediate access to a real, searchable inventory of bonds municipal bonds to investment advisors, broker/dealers, individual and institutional investors.


http://www.eBondTrade.com


http://www.chasecapital.com






Reshuffling News



NBCi to Acquire AllBusiness.com



SAN FRANCISCO — NBC Internet (Nasdaq: NBCI) agreed to acquire AllBusiness.com, a Web service designed to be the virtual partner for small and growing businesses, in an all-stock agreement to be valued at closing at approximately $225 million. AllBusiness.com is a destination Web site offering comprehensive, practical solutions to the everyday challenges of starting, managing and growing a business. AllBusiness.com is financed by American City Business Journals, Canaan Partners, Intel Corp., Technology Crossover Ventures, Venture Strategy Group and other venture and corporate investors.


http://www.allbusiness.com


http://www.nbci.com






StarMedia Network to Acquire AdNet



NEW YORK — StarMedia Network Inc. (Nasdaq: STRM), a global Internet media company for Spanish- and Portuguese-language audiences, together with MVS Comunicaciones, Mexico’s largest cable operator, and Moller Network, a leader in new media advertising in Mexico, announced an agreement through which StarMedia will acquire AdNet, S.A. de C.V., Mexico’s largest Web directory. The consideration for the acquisition is approximately $20 million, consisting of approximately $15 million of StarMedia Network common stock and $5 million in cash. If certain targets are met, StarMedia will issue additional shares of common stock to the sellers, anticipated to

be equal to approximately $115 million over a five-year period.


http://www.starmedia.com


http://www.adnet.com.mx






internet.com To Acquire Linuxnewbie.Org



New York, NY — internet.com (Nasdaq: INTM), the E-Business and Internet Technology Network, publisher of this website, agreed to acquire Linuxnewbie.org. The transaction is expected to be completed in the second quarter of 2000. Additional terms were not disclosed. LinuxNewbie.org is an online resource providing news, analysis, tutorials and discussion forums for beginning Linux users. internet.com will incorporate the site into its recently developed Linux/Open Source Channel and will closely integrate it with JustLinux.com, LinuxStart.com, LinuxCentral.com, LinuxPlanet.com and LinuxToday.com.


http://www.internet.com


http://www.linuxnewbie.org






Venture Catalyst Acquires webinc



SAN DIEGO– Venture Catalyst (Nasdaq:VCAT), a full-service consultant and incubator for emerging businesses, acquired webinc., a recently-organized corporation whose business plan intended to focus upon establishing an incubator in San Diego County for, and providing consulting advice and venture capital-related services to, start-up and early stage companies focusing on Internet infrastructure and technology. webinc.’s founder and CEO, Stephen M. Dirks, will join Venture Catalyst as vice president of corporate development. Venture Catalyst acquired 100 percent of the outstanding webinc. common stock for a combination of cash and equity


http://www.webincubate.com


http://www.vencat.com






HP Spins Off DeepCanyon



PALO ALTO, Calif.– Hewlett-Packard Co. is spinning off DeepCanyon, a multidimensional, innovative Web resource for marketers. HP will maintain an equity position in DeepCanyon. DeepCanyon, which launched its Web site in September 1999, was incubated in HP’s Digital Document Services Operation. The site provides expertise and guidance from top industry analysts, insider tips from influential business leaders, highlights of emerging trends, useful tools to help a marketer work smarter, a community of experts.


http://www.deepcanyon.com


http://www.hp.com






eUniverse Builds Youth Audience With Acquisition of Three Web Sites



WALLINGFORD, Conn. — eUniverse (OTC BB: EUNI), an online interactive entertainment network, agreed to acquire Pokemonvillage.com, ForumNation.com and ReserveAuction.com, three Generation Y (ages 10-20) focused sites. The purchase price for the acquisition of the three web sites was not disclosed.


http://www.euniverse.com


http://www.Pokemonvillage.com


http://www.ForumNation.com


http://www.ReserveAuction.com






OSCM Agrees to Sell Major Stake In Shopss.com



TEL AVIV, Israel — OSCM-One Stop.Com (OTC BB: OSCR) agreed in principal to the sale of up to approximately 80 percent of its interest in Shopss.com (OTC BB: AMCI) to an investment group organized by Jordanian attorney Jarrar M. Faisal. If the sale is completed in its entirety, the investment group would then become the largest shareholder of Shopss.com. Proceeds of the sale will be primarily used by OSCM to build its Internet Protocol communications infrastructure throughout the U.S. and its foreign markets. The build out represents the company’s focused strategy to create a worldwide network of voice over Internet Protocol telecommunications.


http://www.onestop.com


http://www.shopss.com






Fund News



Sevin Rosen Fund VII’s $480 Million Targets eBusiness and Communications Start-ups



DALLAS & PALO ALTO, Calif.– Sevin Rosen Funds, a venture capital firm that invests in early stage technology companies, raised $480 million for Sevin Rosen Fund VII. This fund will continue Sevin Rosen’s early stage investment focus on eBusiness infrastructure and solutions, new Internet-enabled business models and opportunities created by breakthroughs in communication technology.


http://www.srfunds.com






Draper Fisher Jurvetson Launches New Affiliate Fund



Redwood City, Calif.– Draper Fisher Jurvetson, an early stage information technology venture capital firm in Silicon Valley, launched its newest affiliate fund in New York’s Silicon Alley called Draper Fisher Jurvetson Gotham. DFJG is raising a $100 million early stage venture capital fund that will pursue a people/market/technology approach to venture capital investing. The fund is approaching $50 million in capital commitments. Draper Fisher Jurvetson Gotham will be managed by Dan

Schultz and Ross Goldstein.


http://www.dfjgotham.com






Cruttenden Roth, Ventana Global Form Strategic Alliance



NEWPORT BEACH, Calif.– Investment bank Cruttenden Roth and venture capital firm Ventana Global Ltd. have formed a strategic alliance that will focus on discovering and nurturing technology growth companies. Cruttenden Roth has invested as a Special Limited Partner in Ventana’s Technology Gateway Partnership. Since 1993, Cruttenden Roth has raised $2.6 billion in capital in 126 public offerings; including 69 initial public offerings and 57 follow-on offerings, primarily in high-technology companies. Ventana Global is a venture capital firm that has headquarters in Irvine, Calif. Since 1984, it has sponsored eight international private growth partnerships totaling more than $230 million in funds under management; and has made 74 investments.


http://www.ventanaglobal.com


http://www.crutroth.com






divine interVentures Expands to Texas



CHICAGO — divine interVentures is opening a new location in Austin, Texas, as part of its strategy for growing its econet of business-to-business e-commerce companies. divine is a Chicago-based Internet operating company actively engaged in B2B e-commerce through a network of partner companies. Heading up the divine Austin team are Bob Langer, executive managing partner-Austin and Wade Hansen, managing partner-Austin.


http://www.divineinterventures.com






Who’s Who & Where



Crosett Joins fourthchannel as President and COO



COLUMBUS, Ohio– Alexander D. “Lex” Crosett III, a veteran of such technology and Internet companies as Myway.com, CompuServe, Banyan Worldwide, and Lotus Development Corp., joined fourthchannel, a rapidly growing Internet commerce applications services provider, as president and chief operating officer. Fourthchannel received funding in June 1999 led by River Cities Capital Funds.


http://www.fourthchannel.com






Worldweb.net Names David Bosserman CFO



ALEXANDRIA, Va.– Worldweb.net, a provider of content management, appointed David Bosserman as chief financial officer. Most recently, he served as chief financial officer to Best Software overseeing relations with the investor and banking communities, and coordinating board activities. Worldweb.net recently closed its second round of financing.


http://www.worldweb.net






ServiceWare Appoi

nts New CFO



OAKMONT, Pa.– ServiceWare, a fast growing provider of eService solutions, appointed Mark Finkel as the new chief financial officer. Prior to joining ServiceWare, Finkel was founder and president of Emerging Growth Associates, a consulting services firm for emerging technology companies. ServiceWare is backed by C.E. Unterberg, Towbin, Lovett-Miller & Co., the CEO Venture Fund, Norwest Venture Partners, GeoCapital Partners and POLY Ventures II.


http://www.serviceware.com






Zhone Names Gary A. Wetsel as Chief Financial Officer



OAKLAND, Calif.– Zhone Technologies, a company dedicated to building total-delivery solutions for voice, data, and content services, announced that Gary A. Wetsel will join the Zhone management team as its new chief financial officer. Wetsel comes to Zhone from WarpSpeed Communications where he was president and CEO. Zhone’s initial investors include Kohlberg Kravis Roberts & Co., Texas Pacific Group and New Enterprise Associates.


http://www.zhone.com






Joseph Lorenz Named B2BWorks CFO



CHICAGO– B2BWorks, a full-service, online business-to-business advertising network, announced that Joseph Lorenz, former director of corporate planning and analysis for The Quaker Oats Company, will join B2BWorks as the company’s CFO. B2BWorks gives marketers one-stop access to a wide range of the most popular business-content sites owned by leading trade publishers and associations. They recently received their first round of financing.


http://www.b2bworks.net






Dan Drew Joins Syncronex



BELLEVUE, Wash.– Syncronex, a provider of Web-based directory and directory management solutions for workforce information, announced that Dan Drew joined the company as vice president of services and strategic relationships. Drew joins Syncronex after 10 years as a senior executive at Arthur Andersen Business Consulting where he led a number of groups including the organization’s Western Region PeopleSoft practice. In 1999, Syncronex received first-round venture capital funding through Arch Venture Partners and Polaris Venture Partners.


http://www.syncronex.com






FastParts.com Taps Doug Smith for Sales Manager Position



SAN JOSE, Calif.– FastParts.com named C. Douglas `Doug’ Smith as its new sales manager for the FastParts.com Trading Exchange. Prior to joining FastParts.com, Smith served as general manager of Schweber Electronics, Milgray Electronics, and Nu Horizons, and co-founded the manufacturers rep firm, RSVP Associates. FastParts.com is a business-to-business, internet-based trading exchange and marketplace for the electronics parts industry. The privately held company is venture capital backed by Draper Fisher Jurvetson, SoftBank Technology Ventures, and Gabriel Capital.< /P>

http://www.FastParts.com






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